First-quarter net income increased 10% to $382.1 million, or $0.50 per share. Total revenues increased 16.4% to $3.44 billion. Global same-store sales perked an impressive 9% higher, with a 7% traffic boost and a 2% jump in their average ticket.
If investors must search for something to fret about, it would be Starbucks' margins. Quarterly operating margin fell to 16.2% from 17% this time last year. The 80-basis-point decrease is attributed to the high price of commodities, particularly coffee.
On the other hand, Starbucks' recent partnership with Green Mountain Coffee Roasters
In addition, Starbucks' international expansion is progressing. The coffee giant has opened 241 new stores across the world, reaching 500 stores in China and Latin America.
Apparently a theme is popping up amongst food- and beverage-related companies like Starbucks. Quarterly resultsfor McDonald's
Although Starbucks hit a new 52-week high recently, it's still cheaper than some coffee peers. Starbucks' PEG ratio of 1.48 compares quite favorably to Peet's
In September, I purchased shares of Starbucks for the real-money Rising Star portfolio I'm managing for Fool.com, and I'm pleased with its performance so far, and potential investors could view today's weakness as a good buying opportunity. Starbucks remains a solid stock for the long haul.
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